1 Minute Scalping Strategy - Best Indicators for 1m Chart
Top 3 scalping strategies for 1 minute timeframe:
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1-minute scalping strategy works best with Stochastic Oscillator along with two Exponential Moving Averages (EMA) set to 13 periods and 26 periods.
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Moving average ribbon Entry strategy utilizes a combination of simple moving averages (SMAs).
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Bollinger Bands strategy can be an effective tool for trading in a volatile Forex market.
The 1-minute scalping strategy is a popular day trading technique used by traders looking to profit from very short-term price fluctuations. By entering and exiting trades on a 1-minute timeframe chart, scalpers aim to generate steady profits from numerous small gains throughout the trading day. However, 1-minute scalping is also one of the most challenging styles of trading due to the need to make rapid decisions under conditions of high volatility. While this approach allows traders to capitalize on even tiny market movements, it demands rapid decision-making and perfect execution.
In this article we will discuss the basic principle of taking advantage of tiny price movements, outline some strategies and will cover Important considerations for risk management.
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Is scalping suitable for beginners?
Generally no, as it requires discipline, speed and the ability to manage risk in volatile conditions. Novice traders interested in learning this approach are advised to start with longer timeframes initially to develop their skills before taking on the demands of high-frequency 1-minute trading.
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How many trades should a 1-minute scalper aim for each day?
The number will vary depending on individual strategies and markets, but seasoned scalpers may open dozens or even hundreds of positions per day to achieve their profit targets.
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What currency pairs are best for 1-minute scalping?
Pairs with high liquidity and low spreads, especially majors like EUR/USD, are most suitable due to increased volatility and trading activity at smaller timeframes.
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How do I know if scalping is right for me?
The best way to find out is to experiment with different trading strategies and see what works best for you. If you're interested in scalping, start by practicing on a demo account so that you can get a feel for it without risking any real money.
What Is 1 Minute Scalping Strategy?
The 1-minute scalping strategy is a popular trading technique that involves opening and closing trades within a one-minute timeframe. Many traders believe that this strategy can be used to generate quick and profitable results. However, there are also some drawbacks to consider before using this approach.
Pros
One of the biggest advantages of the 1-minute scalping strategy is that it allows traders to take advantage of small price movements. This means that even if the overall market is not moving very much, scalpers can still profit by finding markets that are showing short-term momentum.
Another benefit of this strategy is that it can help traders to manage their risk effectively. By only holding onto trades for a short period of time, scalpers can limit their potential losses if the market moves against them.
The final pro is that the 1-minute scalping strategy can be used in conjunction with other trading strategies. For example, many scalpers will use technical indicators such as moving averages or Bollinger Bands to help them make trade decisions.
Cons
1-minute scalping FX strategy can be very stressful and time-consuming. Because traders are always looking for new opportunities, they often have to sit in front of their screens for long periods of time. This can lead to burnout and make it difficult to stick to the plan.
This strategy also requires a considerable amount of discipline and focus. Because trades are only open for a short period of time, any distractions can potentially lead to significant losses.
Finally, the 1-min scalping strategy can be somewhat risky, as there is always the potential for slippage when entering or exiting trades. This means that traders could end up losing more money than they anticipated if the market moves against them quickly.
Glossary
Forex pip is a measurement unit that demonstrates the change in value caused by the price fluctuation between the currencies of a certain currency pair.
Trading strategy is a set of rules and algorithms used for making decisions when trading in the Forex market. The trading strategies are based on either technical or fundamental analysis, and there are also combined trading strategies.
Spread is the difference between the best buy price and the best sell price in currency exchange and CFD trading.
Leverage means borrowed funds provided by the broker, which allow traders to manage substantial amounts in the market, while having only a small amount of own capital used to cover the margin requirements.
Best Brokers for Scalping
3 Best scalping strategies for 1 minute timeframe
1 Minute scalping strategy
The 1-minute scalping strategy is a popular choice for Forex traders who are looking to make quick profits in a short amount of time. While it is relatively simple to follow, it still requires a certain level of skill and discipline to execute effectively.
One of the key features of this strategy is the low target per trade, which means that traders need to focus on quantity rather than quality. Here, it is not unusual for traders to place more than 100 trades a day to achieve their profit targets.
To use this strategy, traders should use the Stochastic Oscillator and two Exponential Moving Averages (EMA) with a 13-period and 26-period setting. These indicators can help traders identify entry and exit points for their trades. It is also important to note that the period settings can change according to a trader’s preference.
This approach can be implemented with any currency pair, but it is advisable to use it with major currency pairs with narrow spreads. Besides, traders should give priority to executing trades during high-volatility trading sessions, which usually take place during the New York closing and London opening times.
Overall, the 1-minute scalping strategy can be an effective way for Forex traders to make quick profits, given that it is backed by a lot of practice and discipline. Traders should always use risk management tools like stop-loss orders to protect their capital and avoid taking on excessive risk.
1 Minute scalping strategy
Moving average ribbon entry strategy
The Moving Average Ribbon Entry Strategy is a popular scalping technique among Forex traders due to its straightforwardness and efficiency. This strategy utilizes a combination of simple moving averages (SMAs) on a two-minute chart to identify robust trends that can be either bought or sold short on counter swings.
To execute this strategy, traders must place a combination of 5-8-13 SMAs on the chart. When the ribbons align and indicate an upward or downward trend, it implies a strong trend that is likely to persist. Consequently, traders can enter either a buy or sell short position, depending on the trend's direction.
If the market is experiencing range swings, the ribbons on the chart will level out, and the price may cross the ribbon frequently. This implies that the momentum is declining, which is favorable for a range or reversal. Consequently, traders must pay attention to the realignment of the ribbons, with them either rising or falling and spreading out, indicating more room between each line. This delicate pattern serves as a signal to buy or sell short.
This is an uncomplicated scalping strategy for Forex traders to master and can identify robust trends and enable quick profits on counter swings. Nevertheless, as with any trading strategy, traders should use appropriate risk management tools to safeguard their capital and avoid assuming excessive risk.
Moving Average Ribbon Entry Strategy
Bollinger Band scalping
For Forex scalpers, Bollinger Bands can be an effective tool for trading in a volatile market. It is a technical analysis indicator that shows the standard deviation of the price relative to its moving average.
This strategy can be used with currency pairs that have low spreads in the Forex market. These pairs are usually the least volatile, making them ideal for scalpers who are looking to execute multiple trades within a short period of time.
To use the Bollinger Band scalping strategy, scalpers should first plot Bollinger Bands on their chart. The bands consist of three lines: the upper band, the lower band, and the middle band. The middle band is typically a 20-period simple moving average, while the upper and lower bands are usually set two standard deviations away from the middle band.
When the price touches the upper band, it may be overbought, indicating that the price is due for a correction. Conversely, when the price touches the lower band, it may be oversold, indicating that the price is due for a rebound. Scalpers can use this information to enter and exit trades quickly and make a profit.
Bollinger Band scalping strategy
Main Rule of 1-Minute Scalping Strategy
The main rule of the 1-min scalping strategy is simple: you need to take advantage of small price movements. To do this, you need to be able to spot potential trend reversals quickly and act on them. Here are three steps you can take to put this strategy into use:
Identify the Short-term Trend
This can be done by looking at a price chart and observing the direction of the movement. If the trend is moving up, look for opportunities to buy, and if it is moving down, look for opportunities to sell. Remember that the goal is to take advantage of small changes in price, so don't get too caught up in trying to pick the perfect time to enter or exit a trade.
Wait for a Pullback
If you're not familiar with the term, "pullback" refers to a temporary reversal in the price of an asset. In other words, after the price has been moving in a certain direction for a while, it will "pull back" before resuming its original trend. As a scalper, you can take advantage of pullbacks to enter trades at better prices.
Of course, timing is everything when it comes to trading pullbacks. If you enter too early, you could get caught in a false breakout. That's why waiting for confirmation is important before entering a trade. By waiting for confirmation, you can avoid getting caught in fake-outs and increase your chances of success.
Wait for the Indicator to Move
This technical indicator measures momentum and can be used to help determine when a reversal is likely to occur. You can increase your chances of success by waiting for this signal before entering a trade. When the stochastics indicator is overbought, it means that the market is due for a correction.
On the other hand, when the stochastics indicator is oversold, it means that the market is due for a rally. As a result, waiting for the stochastics indicator to move during 1-minute scalping can help traders avoid making false signals and losing money.
What Can I Use as Entry Points and Stop-Losses
When day trading, it's important to have a strategy for entering and exiting trades. One way to do this is to use entry points and stop-losses. An entry point is a specific price at which you enter a trade. A stop-loss is a price point at which you exit the trade if it starts to go against you. Using both can help you to manage your risk and protect your capital.
Entry points are the price at which you will enter the market. You can use support and resistance levels, Fibonacci Retracements, or other technical indicators to help you find an ideal entry point.
Stop-losses are less about finding a specific price point and more about setting a maximum loss that you're willing to accept on a trade. For example, you might set your stop-loss at 10%, which means you'll exit the trade if it starts to lose 10% of its value.
Indicators
There are a few things to keep in mind if you're interested in trying out a forex scalping strategy. First, you need to choose the right indicators. Scalping indicators are designed to give you early warning signs of potential price movements. Some popular examples include the moving average convergence divergence (MACD) indicator and the Relative Strength Index (RSI).
Patterns
Second, you need to be on the lookout for patterns. Common patterns that can be profitable for scalpers include head and shoulders, triangles, and channels. These patterns can give you an indication of where the market is headed and help you make better-informed trading decisions.
Candlesticks
Candlesticks provide valuable information about market sentiment and can help you identify potential reversals. Some common candlestick patterns to look for include dojis, hammers, and shooting stars. By incorporating these three elements into your trading strategy, you'll be well on your way to becoming a successful scalper.
Fibonacci Retracements
This technical indicator is used to identify potential support and resistance levels, based on the Fibonacci sequence. By accurately predicting these levels, traders can make quick and profitable trades. The Fibonacci retracement levels are 23.6%, 38.2%, 50%, and 61.8%. These levels are derived from the Fibonacci sequence, which is a series of numbers where each number is the sum of the previous two.
For example, the Fibonacci sequence starts with 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on. As you can see, the next number in the sequence is always the sum of the previous two numbers. The Fibonacci retracement strategy is based on the idea that prices will tend to retrace a certain percentage of a move before continuing in the original direction.
1-Minute Scalping Strategy Risk-Management Tips
Anyone who has ever tried scalping knows that it is a high-stress, high-pressure trading strategy that requires split-second decisions. And while the potential rewards of scalping can be great, the risks are also significant. As a result, risk management is essential for any scalper. Here are a few risk-management tips to keep in mind:
Use a reliable forex broker that offers tight Spreads and fast order execution. This will help you to avoid slippage and get the best possible prices for your trades. Always use stop-loss orders to protect your capital. Scalping is a volatile strategy, and price movements can be sudden and unpredictable.
A stop-loss order can limit your losses if the market moves against you. Also, don't over-leverage your account. When you scalp, you are essentially betting that the market will move in your favor. But since you can never know for sure what the market will do, it's important not to bet more than you can afford to lose.
Be prepared to take some losses. No matter how good a trader you are, there will be times when the market doesn't go your way. It's important to accept these losses and move on. The goal is to make more profitable trades than losing trades, and over time this will lead to success.
Also, stick to your trading plan and avoid letting emotions get in the way of your decisions.
Is 1 Minute Scalping Strategy Good for Me?
1 Minute Scalping Strategy is best suited for traders who have the time to dedicate to watching their screens and waiting for profits. Although it may take patience to wait for the right opportunities, traders must be disciplined enough to stick to the strategy.
The main reason why this strategy is not suitable for everyone is that some people can get too greedy or distracted while trading. These types of people often lose a lot of money in the markets. This strategy is also best suited to traders who are comfortable making quick decisions and who are able to stay calm in fast-moving markets.
If you're the kind of trader who likes to take your time and analyze your charts before making a move, this strategy may not be for you. On the other hand, if you're confident in your ability to make split-second decisions and you're comfortable with a little bit of ambiguity, the 1-minute forex scalping strategy could be worth a try.
Best Indicators for 1-Minute Scalping Strategy
When it comes to scalping, timing is everything. You need to be able to enter and exit trades very quickly to take advantage of small price movements. But how do you know when to buy or sell? There are a number of different indicators that can be used to identify trading opportunities.
SMA and EMA
Moving averages are one of the most popular indicators used by traders, and for good reason. They're simple to use and easy to understand, making them a great choice for beginners. There are two types of moving averages: simple moving averages (SMA) and exponential moving averages (EMA).
SMAs give equal weight to all data points, while EMAs give more weight to recent data. When using moving averages for scalping, look for crossovers between the two different types. This can indicate a change in trend, which could be a good time to enter or exit a trade.
Bollinger Bands
Bollinger bands are another popular indicator, and they can be used in a similar way to moving averages. Bollinger bands consist of three lines: an upper line, a lower line, and a middle line. The middle line is usually a simple moving average, while the upper and lower lines are set at standard deviations above and below the middle line. Bollinger bands can help you to identify overbought or oversold conditions, as well as potential areas where price might reverse direction.
RSI Indicator
The Relative Strength Index (RSI) is an oscillating indicator that ranges from 0 to 100. It's used to measure the strength of a price movement, with readings above 70 indicating overbought conditions and readings below 30 indicating oversold conditions.
The RSI can also be used to generate buy and sell signals, making it a valuable tool for scalpers. When using the RSI for scalping, it's important to look for divergences between price and the indicator. This can signal a potential reversal, giving you an opportunity to enter or exit a trade.
Stochastic Oscillator
The stochastic oscillator is another popular technical indicator that is used to measure market momentum. The stochastic oscillator compares current security prices with past prices and generates a value between 0 and 100. A reading above 80 indicates that prices are near their upper limit (overbought), while a reading below 20 indicates that prices are near their lower limit (oversold).
Suitable Markets
When deciding what markets to scalp on a 1-minute timeframe, it's important to choose those that offer adequate volatility and liquidity. Some of the best options tend to be:
Major Currency Pairs - Pairs involving the US dollar see heavy volume worldwide, especially EUR/USD, GBP/USD, and USD/JPY. Their tight spreads suit making quick trades.
Commodity Currencies - Other liquid majors like AUD/USD, USD/CAD, or NZD/USD can offer jumping on short-term commodity price swings.
Indices - The S&P 500, DAX 30, and FTSE 100 have enough movement for scalping over the 1-minute period during active trading sessions.
High Beta Stocks - Volatile tech or biotech stocks tend to work well. Look to the NASDAQ for names with enough traders driving frequent tiny price changes.
Cryptocurrencies - Bitcoin, Ethereum, and stablecoins vs USD see 24/5 liquidity. Their high volatility creates opportunities but also increases risk.
Commodities - Oil, gold, and copper offer scalping potential related to demand or inventory data updates.
Markets to avoid include illiquid minors, fixed income like bonds or treasuries lacking significant intraday changes, and most forex exotics.
Expert Opinion
Using the 1-minute scalping strategy is not an easy task. On the H1 chart, each candlestick takes an hour to form, and you still have time to build levels, read news, and find confirming signals, while on the M1 chart, it changes every minute. Looking for trend confirmations on one-minute volatility is a waste of time. Traders need instant reaction, intuition, and the ability to quickly assess the situation visually. This strategy quickly exhausts emotionally, as scalpers open dozens of trades a day. Compared to intraday strategies, the profitability of a single trade in a one-minute timeframe is small.
The advice for novice traders is to start with M30-H1 timeframes. On these charts, signals appear 1-3 times a day (maybe less), but you save on swaps, and you have time for analysis. Although, if you are interested, no one is stopping you from trying your luck at scalping on a demo account.
Glossary for novice traders
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Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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Scalping
Scalping in trading is a strategy where traders aim to make quick, small profits by executing numerous short-term trades within seconds or minutes, capitalizing on minor price fluctuations.
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Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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Bollinger Bands
Bollinger Bands (BBands) are a technical analysis tool that consists of three lines: a middle moving average and two outer bands that are typically set at a standard deviation away from the moving average. These bands help traders visualize potential price volatility and identify overbought or oversold conditions in the market.
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Volatility
Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.
Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).